Polypropylene

Polypropylene Prices, markets & analysis

If you buy or sell Polypropylene or related products, you need up-to-date global pricing data and the background information to help you understand it.

Our network of price reporters across Asia, Europe and the US enables us to deliver this. We publish their insights in our comprehensive daily and weekly price reports, plus we offer in depth Polypropylene news and analysis you need to put pricing information into context.

Polypropylene overview Transcript

Polypropylene or PP is a thermoplastic material that is mainly sold in resin pellets to processors who then shape it into a wide variety of products including car bumpers, oil containment booms and medicine caps.

US polypropylene has major end markets in automotive manufacturing and rigid packaging.

Some lower margin applications such as film and carpet have been largely outsourced from the US.

Most domestic contracts are linked to monomer benchmarks, so propylene market fluctuations are the main drivers of polypropylene contract prices.

In the recent years it has become more common for propylene shortages to cause rapid fluctuations in pricing for polypropylene and its feedstock.

The US polypropylene industry used to serve as a dependable export supplier to the world, but with the relatively high cost structure of feedstock, North America has become a more regional market.

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How we can help

Polypropylene news and market information products from ICIS

We offer the following regional Polypropylene analysis and news coverage
to keep you informed of factors and developments affecting prices
in the Polypropylene marketplace.

Price reporting

Price Reporting – More information about the price reports we publish on Polypropylene

Relationship chart

Upstream of Polypropylene

Polypropylene

Downstream of Polypropylene

Market overview

Polypropylene: Market overview

Updated to Q1 2015

The recent collapse in crude oil and naphtha prices has had an impact on polypropylene (PP) prices globally, and prices have been falling swiftly in most regions.

Crude oil and naphtha prices remain volatile, and many players are bearish for their short-term outlook, affecting PP activity downstream because buyers want to avoid building stock in a downward-moving market.

Sources said the first few months of 2015 will likely see price cuts in US PP contracts if the plunge in energy markets continues. A few producers continue to seek a few cents/lb of margin expansion, but most sources say the outcome is likely to be modest.

Market players in Southeast (SE) Asia expect PP import prices to bottom out in Q1 as the spread between PP and propylene prices narrows amid the weak energy market. The price downtrend is most likely to extend in early Q1 despite the anticipated pick-up in demand after the long winter holiday. The SE Asia market outlook is uncertain in Q1 as a slowing Chinese economy and falling crude oil prices continue to weigh heavily on the regional market.

European PP is expected to move alongside crude oil and naphtha prices. The weak euro could continue to support exports and limit imports, but much depends on how prices fare in other regions.

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ICIS price assessments are based on information gathered from a wide cross-section of the market, comprising consumers, producers, traders and distributors from more than 250 reporters world-wide. Confirmed deals, verified by both buyer and seller, provide the foundation of our price assessments.

Our in-depth market knowledge drives our specialist focus, as we recognise the importance of individual market dynamics and not a one-size-fits-all approach.

Over 25 years of reporting on key chemicals markets, including Polypropylene, has brought global recognition of our methodology as being unbiased, authoritative and rigorous in preserving our editorial integrity. Our global network of reporters in Houston, London, Singapore, Shanghai, Guangzhou, Mumbai, Perth and Moscow ensures unrivalled coverage of established and emerging markets.

Polypropylene Methodology

Polypropylene (PP) is one of the most versatile of the bulk polymers. Its intrinsic properties of high stiffness, good tensile strength, good processability and inertness towards acid

Polypropylene US price forecast methodology

About

About Polypropylene

Polypropylene (PP) is a colourless, translucent to transparent solid with a glossy surface. It has good resistance to acids, alkalis, inorganic chemicals and organic chemicals with the exception of hydrocarbons and chlorinated compounds.

It has improved impact strength, a higher softening point, lower density, better stress cracking and more scratch resistance than other polyolefins. However, a disadvantage of this polymer is its brittleness at low temperatures.

Polypropylene was first produced in a slurry process using Ziegler-Natta catalysts. Bulk phase technologies were then developed while higher activity catalysts enabled gas phase processes to be used. A combination of bulk phase tubular and gas phase reactors has become a popular process.

PP has key applications in packaging, fibres and automotive parts. PP can be extruded for pipe, conduit, wire and cable, while atactic PP has outlets in paper laminating, sealants and adhesives.

NPE 2015 Special Publication

As polymer producers, processors and users ready themselves for the NPE2015 plastics event in Orlando, Florida, in March, ICIS - in association with organiser SPI - takes a look at industry developments and what will be on show at the meeting.